F&M Bank Corp. Reports Third-Quarter 2026 Results and $0.26 Dividend
F&M Bank Corp. reported third-quarter 2026 net income of $2.64 million and nine-month net income of $11.24 million, while its board declared a $0.26 per-share dividend.
F&M Bank Corp. reported net income of $2.64 million, or $0.74 per diluted share, for the three months ended September 30, 2026. The company also reported nine-month net income of $11.24 million, or $3.14 per diluted share, and said its board had declared a quarterly dividend of $0.26 per share.
Third-quarter net income compared with $5.37 million, or $1.50 per diluted share, in the second quarter of 2026 and $2.92 million, or $0.82 per diluted share, in the third quarter of 2025.
For the nine months ended September 30, 2026, net income was $11.24 million, or $3.14 per diluted share, compared with $8.34 million, or $2.35 per diluted share, for the same period in 2025.
Return on average assets was 0.74% in the third quarter, while return on average equity was 9.26%. The company reported a net interest margin of 3.69%, compared with 3.79% in the second quarter of 2026 and 3.36% in the third quarter of 2025.
Net interest income totalled $12.29 million during the quarter. That was a decrease of $38,000, or 0.31%, from the second quarter and an increase of $1.80 million, or 17.14%, from the third quarter of 2025.
The company attributed the linked-quarter movement to a $369,000 increase in interest income being more than offset by a $407,000 rise in interest expense. The year-over-year increase was primarily associated with loan growth and a $379,000 decrease in interest expense.
Farmers & Merchants Bank recorded a $1.53 million provision for credit losses in the third quarter. This included a $1.54 million provision for loans held for investment and a $9,000 recovery of the reserve for unfunded loan commitments. The company said the provision reflected changes to qualitative factors in its allowance model and loan portfolio growth of $44.91 million during the quarter and $83.92 million year-to-date.
At September 30, 2026, F&M Bank Corp. reported total assets of $1.42 billion, loans held for investment of $970.2 million and total deposits of $1.28 billion.
Compared with December 31, 2025, total assets increased by $45.7 million, or 3.33%; loans held for investment rose by $83.9 million, or 9.47%; and deposits increased by $36.4 million, or 2.92%.
Loan growth included residential mortgage, multifamily, home equity, commercial and industrial, nonowner-occupied commercial real estate, farmland, and other construction and land development loans. These increases were partly offset by declines in residential construction, owner-occupied commercial real estate and automobile loans.
Investment securities stood at $311.3 million at quarter-end, down $34.0 million, or 9.9%, from December 31, 2025. The company reported total unrealised losses of $24.3 million in the securities portfolio at September 30, 2026, compared with $21.0 million at December 31, 2025.
Nonperforming loans were $4.19 million at the end of the quarter. Nonperforming loans as a percentage of total loans were 0.43%, unchanged from June 30, 2026, and down from 0.68% at December 31, 2025.
Net charge-offs were $410,000, or 0.17% of average loans, compared with 0.06% in the second quarter of 2026 and 0.49% in the third quarter of 2025. The allowance for credit losses on loans was $9.2 million at September 30, 2026.
On-balance-sheet liquid assets totalled $281.7 million, representing 19.86% of total assets. The bank also reported $90.0 million in available unsecured federal funds lines, $214.4 million in available borrowing capacity under a secured Federal Home Loan Bank line, and securities with a collateral value of $88.8 million pledged to the Federal Reserve Bank discount window.
F&M Bank Corp.'s board declared the $0.26-per-share dividend on October 22, 2026. It is scheduled to be paid on November 30, 2026, to shareholders of record as of November 14, 2026.
F&M Bank Corp. is the parent company of Farmers & Merchants Bank and is listed on OTCQX under the symbol FMBM. Farmers & Merchants Bank operates fourteen banking offices in Virginia, and the company also owns VSTitle.
F&M Bank Corp. announced its earnings for the three- and nine-month periods ended September 30, 2026, and reported a quarterly dividend declared by its Board of Directors. The company is listed as OTCQX:FMBM.
F&M Bank Corp. reported third-quarter 2026 net income of $2.64 million, or $0.74 per diluted share. This compared with $5.37 million, or $1.50 per diluted share, in the second quarter of 2026 and $2.92 million, or $0.82 per diluted share, in the third quarter of 2025.
For the nine months ended September 30, 2026, F&M Bank Corp. reported net income of $11.24 million, or $3.14 per diluted share. This exceeded net income of $8.34 million, or $2.35 per diluted share, reported for the same period in 2025.
At September 30, 2026, F&M Bank Corp. had total assets of $1.42 billion, loans held for investment of $970.2 million and total deposits of $1.28 billion. Compared with December 31, 2025, total assets increased by $45.7 million, or 3.33%, loans increased by $83.9 million, or 9.47%, and deposits increased by $36.4 million, or 2.92%.
F&M Bank Corp. said loan growth included increases in residential mortgage, multifamily, home equity, commercial and industrial, nonowner-occupied commercial real estate, farmland, and other construction and land development loans. These increases were partially offset by decreases in residential construction, owner-occupied commercial real estate and automobile loans.
Third-quarter 2026 net interest income was $12.29 million, down $38,000, or 0.31%, from the second quarter of 2026 and up $1.80 million, or 17.14%, from the third quarter of 2025. The linked-quarter decrease reflected a $369,000 increase in interest income offset by a $407,000 increase in interest expense, while the year-over-year increase was primarily attributed to loan growth and lower interest expense.
F&M Bank Corp.'s net interest margin was 3.69% in the third quarter of 2026, compared with 3.79% in the second quarter of 2026 and 3.36% in the third quarter of 2025. The company also reported a third-quarter yield on earning assets of 5.54% and a cost of funds of 1.92%.
F&M Bank Corp. recorded a provision for credit losses of $1.53 million in the third quarter of 2026, including a $1.54 million provision for loans held for investment and a $9,000 recovery of reserve for unfunded loan commitments. The company attributed the increase to updates to qualitative factors in the allowance model and loan portfolio growth of $44.91 million during the quarter and $83.92 million year-to-date.
Nonperforming loans were $4.19 million at the end of the third quarter, while nonperforming loans as a percentage of total loans were 0.43%, unchanged from June 30, 2026, and down from 0.68% at December 31, 2025. Net charge-offs were $410,000, or 0.17% of average loans, compared with 0.06% in the second quarter of 2026 and 0.49% in the third quarter of 2025.
F&M Bank Corp.'s investment securities decreased by $34.0 million, or 9.9%, from December 31, 2025, to $311.3 million at September 30, 2026. The company reported sales of $29.8 million, purchases of $49.0 million, $37.0 million in mortgage-backed securities paydowns, $12.9 million in maturities and calls, and total unrealised losses of $24.3 million at September 30, 2026.
On-balance-sheet liquid assets totalled $281.7 million at September 30, 2026, representing 19.86% of total assets. The Bank also reported $90.0 million of available unsecured federal funds lines, $214.4 million of available borrowing capacity under a secured Federal Home Loan Bank line, and securities with a collateral value of $88.8 million pledged to the Federal Reserve Bank discount window.
F&M Bank Corp.'s Board of Directors declared a dividend of $0.26 per share to common shareholders on October 22, 2026. The dividend will be paid on November 30, 2026, to shareholders of record as of November 14, 2026; based on the company's most recent trade price of $40.90 per share, the company stated that this represented a 2.54% yield on an annualised basis.
F&M Bank Corp. is an independent, publicly traded financial holding company whose subsidiary, Farmers & Merchants Bank, offers a full range of financial services through fourteen banking offices in Virginia. The company also owns VSTitle and states that its activities include serving agricultural customers, small businesses and the nonprofit sector.
CEO Mike Wilkerson said F&M Bank Corp.'s financial performance for 2026 continued to be strong and attributed the results to employee commitment, customer service, expanded relationships, new relationships and diversified lines of business. He said the company's focus remained on safely and soundly creating sufficient, sustainable profit to meet shareholder expectations, while the release cautioned that forward-looking statements are subject to significant risks and uncertainties and that actual results could differ materially.